Olderpreneurship is on the rise, fuelling the economic recovery. Meet two
business owners who discovered new life from start-up ventures at an age
when many others have retired

There are more than 10m people aged over 65 in the UK, and an estimated 19m people will be over 65 by 2050. This ageing population presents a number of societal challenges but there has been an unexpected economic benefit: more people are starting businesses later in life than ever before.

According to the latest Global Entrepreneurship Monitor, entrepreneurial activity in the over-50s has risen more than 50pc since 2008, accelerating over the past two years to overtake the growth in young entrepreneurs. Last year 6.5pc of over-50s were running businesses.

This is good news for the British economy. According to research from the Cranfield School of Management, businesses run by owner-managers over 50 demonstrate phenomenal growth rates, with revenues increasing three-and-a-half times faster than GDP growth: 11.5pc compared with 3.1pc.

Profit growth at these businesses is forecast to hit 29pc and “olderpreneurs” create jobs at a rate more than seven times faster than the UK economic average.

Michael Harris was 64 when he founded Kind2Skin in 2011. The firm manufactures natural deodorants for children, and is forecast to turn over £6m within two years from a standing start in 2012, employing five staff.

Mr Harris launched the start-up following a successful career in the pharmaceuticals industry, devising own-brand wet wipes for big brands and supermarkets. “I was thinking about retiring when my daughter came to me, saying that her seven-year-old was developing body odour, a condition known as precocious puberty,” he explains. “Most adult deodorants contain ingredients that are not good for growing skin, like aluminium, parabens and alcohol, so she asked me to come up with an alternative.”

After discovering massive demand for a child-friendly natural deodorant on parenting sites, Mr Harris leveraged his existing laboratory network to create his first product. Two years later, he presented the product to a Boots buyer, who ordered units for 600 stores.

Being an olderpreneur was a significant advantage when negotiating deals with retailers, according to Harris. “Most buyers are much younger than me but they respect that I’ve had a lifetime in business and know I have the experience to deliver what I’ve promised,” he says.

Bobby Lane, growth consultant at Shelley Stock Hutter, helped take Keep It Kind from concept to start-up, and is now working with Mr Harris to launch the brand in the US.

“Unlike many of the younger entrepreneurs I’ve worked with, who prefer to hide behind their keyboards and send emails, Michael was completely unafraid to pick up the phone or go and meet potential customers,” he says. “With age comes confidence.”

The Keep It Kind range now boasts a Fresh Kids deodorant for younger “tweens” and a two sprays for children aged between 11 and 14. “We want to be a global brand,” says Harris. “We’re now stocked in Tesco stores and we’re on Amazon, and the US is set to be huge for us.

“Running a business has given me a new lease of life,” he continues. “I don’t want to be a 67-year-old couch potato. I wake up hugely excited about my working day.”

The ex-group managing director of Finnish toolmaker Fiskars, he retired after becoming fed up with corporate life. “In a big company, your life is not your own,” he says. “Even when you’re running the company, you are constrained by timetables and meetings.”

Big Fire’s typical hot tub customer is aged 35-65. By targeting a more mature customer, Mr Macqueen is tapping into the so-called “grey pound”, which is estimated to be worth £320bn, according to financial services and leisure firm Saga.

Over-50s now account for 76pc of the nation's financial wealth. “Our products don’t come cheap,” says MacQueen. “These are unusual and quirky products that are better suited to the well-heeled.”

One of the benefits of starting a business later in life is that there are often savings, a pension pot, or assets that can be leveraged for start-up capital. Big Fire was launched with just £50,000. According to the Annuity Bureau, the average UK annuity in 2013 was bought with a pension fund of around £35,600.

Pension-led funding specialist Clifton Asset Management is now working with PRIME, the Prince’s Initiative for Mature Enterprise, to help more older entrepreneurs finance their businesses. Clifton chairman Adam Tavener says: “As you need an accrued pension of more than £50,000 to make this funding process viable, the over 50s are more likely to have the required pension funds – although this can comprise a number of different pensions held by one or more owners/directors.

“Mature entrepreneurs now make up around 65pc of our clients," he adds, "with the average age of our clients being 53, and this percentage continues to increase.”

According to new data from PRIME, start-up failure rates in this age bracket are exceptionally low: 95pc of its members were still in business a year or more after starting up, compared to the national average of just 66pc. Of these olderpreneurs, 71pc plan to grow their ventures further in the future.

MacQueen, one of the entrepreneurs in the PRIME network, intends to pursue rapid growth at Big Fire by creating a number of of satellite dealerships across the UK. This will take revenues to £1m.

“I don’t want to retire into oblivion,” he says. “Instead, I want to grow my own business, and through PRIME I’m also working with two young entrepreneurs to help them to grow theirs. It’s incredibly rewarding.”

According to recent data from the Office for National Statistics, there are currently 1.87m self-employed workers over the age of 50 in the UK, up 28pc in five years.

The recession was initially cited as a key driver for olderpreneurship, as more people tried to supplement their incomes during the downturn. State pension reform, which will see pensioners draw just £7,700 a year from the government, is now fuelling the trend.

And then there's increasing life expectancy, which recently topped 81 years in the UK, and is still rising. This has prompted many economist and enterprise pundits to call for increased financial support for this sector.

“The Government should consider targeting additional business support at older people starting new ventures, to help increase the likelihood of success of their start-ups,” says James Hickie, lecturer in enterprise at Manchester Business School. “Ray Kroc did not start to build the McDonald’s fast food chain until his mid-fifties.”

Mark Hart, entrepreneurship professor at Aston Business School, adds: “These are not people who are past retirement, but individuals with years of productive activity in front of them, and their move into the ranks of entrepreneurs opens an interesting new aspect within the UK’s business culture, both socially and economically.”